Kimberly-Clark Corp. (KMB, Financial) and Carter's Inc. (CRI, Financial) declared quarterly dividends on Thursday. These stocks have been paying dividends for several years and are beating the S&P 500 Index in terms of a higher dividend yield. The benchmark for U.S.-listed stocks yields 1.84% as of Nov. 21.
Kimberly-Clark
Kimberly-Clark shares were up 0.44% at a price of $133.95 per share in extended trading on Thursday after the company declared a quarterly dividend of $1.03 per common share, which is in line with the previous payment.
The comsumer goods company will pay the quarterly dividend to its shareholders on Jan. 3, 2020. Investors who are interested in the payment must be on the company's record no later than Dec. 6. The ex-dividend date is scheduled for Dec. 5.
Based on Thursday ’s closing price of $133.36, the distribution generates a 3.06% yield in terms of both forward and trailing 12-month dividend.
The Dallas-based household and personal products manufacturer and marketer has continuously paid dividends for 85 years and increased the total annual payment 47 times over the last 47 years.
The trailing 12-month dividend per share has increased 4.5% over the last five years through Dec. 28, 2018.
Kimberly-Clark can fund the payment of the dividend thanks to $416 million in cash available on hand as of Sept. 29 and total cash inflows of approximately $2.8 billion that are generated from yearly operations.
The stock has gained 17% year to date. The 52-week range is $106.59 to $143.5.
The stock has a market capitalization of $45.72 billion, a price-earnings ratio of 22.87 and a price-sales ratio of 2.5.
The Peter Lynch chart indicates that Kimberly-Clark is overvalued.
Wall Street issued a hold recommendation rating with an average target share price of $138.86.
Carter's
The share price of Carter's was unchanged at $99.92 in extended trading on Thursday after the company announced a quarterly dividend of 50 cents per common share, which is in line with the previous payment.
Carter's will pay the quarterly dividend to its shareholders on Dec. 13. Investors must be on the company's recorded no later than Dec. 3 if they want to benefit from the payment. The ex-dividend date is Dec. 2.
Based on Thursday’s closing share price, the distribution generates a forward dividend yield of 2% and a trailing 12-month dividend yield of 2%.
Carter's is an Atlanta-based designer and marketer of children's wear under brands such as Carter's, Just One You, Child of Mine, Precious Baby, OshKosh B'gosh and many others. The company has continuously paid and increased dividends since June 14, 2013.
The trailing 12-month dividend per share hit 29.4% growth over the past five years through Dec. 28, 2018, as indicated by the chart below.
Carter's sustains the quarterly dividend payment with $154 million in cash available on hand as of Sept. 29 and more than $405 million in cash flow that can be generated every year by operating activities.
The stock has gained 22.4% year to date. The 52-week range is $75.66 to $111.12.
The stock has a market capitalization of $4.41 billion, a price-earnings ratio of 16.97, a price-book ratio of 5.43 and a price-sales ratio of 1.3.
The stock is trading a bit over its fair value, as indicated by the Peter Lynch earnings line. This suggests that shares could be a little bit overpriced.
Sell-side analysts have issued an overweight recommendation rating for shares of Carter's with an average target price of $109.40.
Disclosure: I have no positions in any securities mentioned.
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